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National carrier had made a three-year plan to monetise assets worth Rs 5,000 crore (Rs 50 billion) by March 2016.
Government-owned Air India (AI) is awaiting the Union civil aviation ministry's nod to sell its properties in Mumbai and Chennai, with the buyers ready, as a part of its asset monetisation plan.
It hopes to collectively earn about Rs 200 crore from the sale of four flats on Pedder Road here and a 1.3-acre lot in Chennai.
“We submitted the proposals to the ministry about a month ago and are waiting for permission. Government rules require us to take prior consent from the ministry. State Bank of India has agreed to purchase four flats in Sterling Apartments in Mumbai and the income tax department has expressed willingness to acquire the land in Chennai,” said an AI source.
The carrier had made a three-year plan to monetise assets worth Rs 5,000 crore (Rs 50 billion) by March 2016 and use the money to retire debt. However, the airline was unable to meet its Rs 1,200 crore (Rs 12 billion) target for 2013-14.
It has been unable to sell any of its properties but has been successful in leasing out vacant floors in the Air India building at Nariman Point in this city.
It now plans to raise Rs 5,000 crore over 10 years. Last December, it signed an agreement with National Buildings Construction Corporation to jointly develop its land parcels, including the one in Chennai.
However, the plan with NBCC is now on the back burner and AI is again pursuing the sale option for its Chennai land. Also it hopes to build a multi-storey building on its Baba Kharak Singh Marg land in Delhi.
This was purchased by the airline in 1983 but secured full possession only several years later, as it had got encroached on. AirIndia's asset monetisation programme was approved with its turnaround plan by the Cabinet Committee of Economic Affairs in April 2012.
In January 2013, it approved real estate consultant DTZ to help it monetise the assets. The following month, the airline's board gave its approval to sell land and properties in Kolkata, Coimbatore, Gurgaon, Chennai and Mumbai.
An oversight committee comprising of a former chief vigilance commissioner and former comptroller and auditor general was formed. Air India has been looking to sell its bungalows and flats in Mauritius, Nairobi and Hong Kong.
The sales of these foreign properties was first approved in 2009 but the airline has not been able to conclude the sale.
The Hong Kong flats have not been sold till now because of issues concerning property records and now the airline is planning to give them out on rent.
